Yes, we’ve heard this several times before, and for good reason:
China’s relatively mild slowdown in the second quarter has reignited a controversy about whether its official statistics can be trusted.
Chinese growth edged down to 7.6 per cent in the second quarter from 8.1 per cent in the first quarter, and analysts said the momentum in June, from stronger bank lending to rising investment, pointed to a rebound in the second half of the year.
But rather than delivering reassurance, the numbers instead provoked questions about whether the reality is worse than the government is letting on.
Economists with Barclays noted that a deceleration in industrial production was consistent with 7.0-7.3 per cent growth. Analysts at Capital Economics said that the true figure was probably closer to 7.0 per cent.
[. . .]
Doubts about Chinese data have a fine pedigree. Li Keqiang, who is widely expected to succeed Wen Jiabao later this year as premier, confided to U.S. officials in 2007 that gross domestic product was “man made” and “for reference only”, according to a diplomatic cable published by WikiLeaks.
Earlier posts on the Chinese economy are here.
